Good Intentions
As a coach, trainer, or consultant, you want nothing more than to see your students use the materials and knowledge you share in their lives and business and see massive transformations and success. And that well-intentioned drive to see others succeed because of your materials can sometimes lead to business decisions that may or may not be best for your overall business or cashflow.
Before some coaches know it, the one or two clients they allowed to get on a payment plan can quickly become a much longer list of clients and monthly payment schedules they need to track, manage and collect on. Now instead of coaching you are collecting.
And that’s how the game of in-house financing and “chasing payments” begins for many coaches. You meant well, you wanted to ensure everyone interested in your coaching had the opportunity to enroll, but sometimes there are unintended consequences.
Life Happens
No matter how good the intentions are of clients, life can, and often does happen. Anything from shifts in priorities, job or business loss, career changes, or once-in-a-lifetime pandemics can cause late or missed payments for your services.
Regardless of the reasons, these missed payments from clients may create a negative impact on your cashflow. And now you’re wearing a new hat and have added another title under your signature, “Accounts Receivable”.
The Hidden Cost
Before you know it, some of the time that used to be invested into marketing your coaching business, courses, or other materials to attract new clients begins to be eaten up by making calls, sending emails, and negotiating with current clients because of late payments.
This costs your coaching business money in multiple ways. You’re spending less time marketing, therefore you’re enrolling fewer clients, generating less revenue, and on top of that you’re chasing client payments.. This is not a trap any coach, consultant, or trainer ever wants to be in.
